How to Mitigate Disruptions from the Upcoming ILA Port Strike

PORT STRIKE

The looming strike by the International Longshoremen’s Association (ILA), set to begin on October 1, 2024, threatens to disrupt major ports along the East and Gulf Coasts. The ILA is in a contentious battle with the U.S. Maritime Alliance over wages and job security, especially regarding automation. As Dennis Daggett, ILA Executive Vice President, stated, the union is fighting against “corporate greed” and will be “on the right side of history” if a strike occurs.

This strike could affect key ports, including:

  • Port of New York and New Jersey: The Port of New York and New Jersey has been experiencing double-digit growth in container volume, reporting a significant increase of 11.1% year-on-year as of July 2024. This makes it one of the busiest ports in the U.S., handling over 7.5 million TEUs annually. However, with the ILA threatening to strike over issues like wages and automation, this port could see significant disruptions starting in October.
  • Port of Savannah, Georgia: Like other major East Coast ports, Savannah is preparing for a potential backlog. The Georgia Ports Authority has been working on contingency plans, but the strike could halt operations entirely, severely impacting the flow of goods. Savannah processes over 5 million containers annually, and any work stoppage would lead to major delays in shipments.
  • Port of Charleston, South Carolina: Charleston, another key hub, is facing similar risks. It handles a large volume of automotive, retail, and pharmaceutical imports, sectors that are particularly vulnerable to supply chain disruptions. Currently, there are no reported slowdowns, but the strike could leave vessels anchored offshore, waiting to dock
  • Port of Miami, Florida: Both Miami and Baltimore are critical for U.S. imports, especially for goods from Latin America. These ports are also preparing for possible delays, with Miami being a gateway for perishable goods like food and pharmaceuticals.

With these key hubs at risk of closure, businesses must act now to mitigate potential disruptions.

How to Prepare?

1. Reroute Shipments to Unaffected Ports

To avoid bottlenecks, consider rerouting cargo to unaffected ports such as those on the Gulf Coast or West Coast. Ports like New Orleans, Los Angeles, and Long Beach may serve as viable alternatives. While this may extend transit times, it helps maintain supply flow.

2. Leverage Air Freight for Critical Goods

If your business depends on timely deliveries, shifting some cargo to air freight is a good option. Although it comes with higher costs, air freight avoids the delays caused by ocean freight disruptions at affected ports.

3. Stock Up and Optimize Warehousing

Consider increasing inventory levels in strategic locations, particularly at inland distribution centers, to prevent shortages if shipments are delayed. Warehousing goods near alternate ports or even within the interior of the country can provide a buffer during disruptions.

4. Utilize Intermodal Transport

Shifting goods from ships to trucks or rail at alternative ports can be an effective way to bypass bottlenecks. Intermodal transport allows you to get goods inland from ports like New Orleans or Houston, which may not be impacted by the strike.

5. Communicate Proactively

Ensure that your suppliers, carriers, and customers are aware of potential delays and alternative plans. Clear communication throughout the supply chain will help reduce confusion and keep operations as smooth as possible during the disruption.

6. Prepare for Cost Increases

When demand spikes for alternative shipping options, costs for air freight, trucking, and rerouting may increase. Budget for these possibilities now, so you’re not caught off guard later.

7. Implement Real-Time Tracking

Make use of technology to track shipments in real-time, allowing you to stay informed and make quicker decisions regarding rerouting or expediting shipments.

In conclusion, The upcoming ILA strike is likely to cause delays at major East Coast and Gulf Coast ports, but with the right strategies in place, businesses can minimize the impact. By rerouting shipments, using air freight, and bolstering inventory management, you can keep your supply chain moving. Partnering with GLC ensures you have the flexibility and support needed to navigate these turbulent times.

Prepare now—contact GLC today to discuss your options for rerouting and optimizing your logistics strategy.

How Can GLC Help?

At Global Logistical Connections, we understand the complexities of navigating potential supply chain disruptions. Our expertise in third-party logistics (3PL) and vast network of shipping solutions allows us to adapt quickly to changes, ensuring that your goods reach their destination, even when the unexpected occurs.

If you’re concerned about how the ILA negotiations might impact your business, contact us today to explore alternative shipping strategies and contingency plans. We’re here to help you stay ahead in an unpredictable world.